How much interest do I get on a Demat account?

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  • Updated On:
    24-Jun-2022
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Short Answer

No interest is paid on your Demat Account. Since a demat account is not like a savings or current bank account where you deposit your money. It is used to hold securities in an electronic format.

Detailed Answer

You will not get any interest on a Demat account, unlike your bank deposit. Demat accounts are only for holding various securities such as units of mutual funds, shares, and so on in digital format.

If you are looking to invest in stocks, sell or transfer your units of mutual funds online then a Demat account is a must. The Demat account usually reflects your holdings or investments in various securities such as units of mutual funds, shares, and so on.

We usually deposit an amount in a bank deposit such as savings accounts, FD, and so on. However, on a Demat account, there is no such deposit, so no interest is paid.

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